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Kitex Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Niki Jackets.
Company Niki JacketsDirect materials $25,000 $500Direct manufacturing labor $5,000 $200Manufacturing overhead costs $20,000 Machine-hours 40,000 mhrs 800mhrs
Problem 1: For Kitex Manufacturing, determine the annual manufacturing overhead cost-allocation rate
Problem 2: Determine the amount of manufacturing overhead costs allocated to the Niki jackets job
Problem 3: Determine the estimated total manufacturing costs for the Niki Jackets job.
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